A company entered into the following transactions concerning its computer system.
On January 1,2012,it purchased a computer system that cost $1,480,000.The estimated useful life of the computer is 3 years and salvage value is $40,000.Straight-line depreciation is to be used.On January 1,2013,the company determined that the estimated useful life of the computer would be 4 years instead of 3 years.The estimated salvage value will only be $10,000.
a.Prepare the journal entry to record depreciation expense for 2012.
b.Prepare the journal entry to record depreciation expense for 2013.

Question

Quizplus · Accepted Answer

The Answer of A company entered into the following transactions concerning its computer system.
On January 1,2012,it purchased a computer system that cost $1,480,000.The estimated useful life of the computer is 3 years and salvage value is $40,000.Straight-line depreciation is to be used.On January 1,2013,the company determined that the estimated useful life of the computer would be 4 years instead of 3 years.The estimated salvage value will only be $10,000.
a.Prepare the journal entry to record depreciation expense for 2012.
b.Prepare the journal entry to record depreciation expense for 2013.

A Company Entered into the Following Transactions Concerning Its Computer